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Weekly Wrap: Banking Stocks Help Sensex, Nifty Clock Best Week Since November

Indian equity benchmarks clocked their best week in more than four months, led by a rally in banking stocks.

The S&P BSE Sensex and the NSE Nifty 50 Index gained 3.7 percent and 3.5 percent, respectively, to end the week at 38,024 and 11,426.85. Both the indices hit a fresh all-time high in this year.

The Nifty ended the week on a “buoyant note”, tracking the prevailing momentum, according to Jayant Manglik, president of retail distribution at Religare Broking. “After a firm start, it gradually moved higher, thanks to noticeable buying in banking and IT stocks,” he said in a statement.

The Nifty has almost reached closer to its next major hurdle, 11,525, so we might see some consolidation prior to further rise.

Jayant Manglik, President-Retail Distribution, Religare Broking

Manglik suggested investors to follow the “buy on dips” approach.

“It’s time to be selective when it comes to individual stocks and should be done with a proper money management,” Sameet Chavan, chief analyst (technical and derivatives) at Angel Broking, said. “The Nifty extended its march towards the 11,500-mark. We are at a kissing distance from this figure and it’s a matter of time that the index would actually see this number. But, the point is, will there be some exhaustion or the index will continue heading towards all-time highs,” Chavan said in a separate statement.

Broader Market Rally

The broader market represented by the NSE Nifty 500 Index, too, rose for the fourth straight week to end 3.1 percent higher, led by Indo Count Industries Ltd. and Himatsingka Seide Ltd.

All the 11 sectoral gauges compiled by the National Stock Exchange advanced, led by the NSE Nifty Realty Index’s 6.38 percent rally.

Rupee’s The Best Asian Currency

The Indian rupee ended higher for the fifth straight week—its longest weekly gain since December 2017. The local currency appreciated 1.5 percent this week to close at 69.09 against the U.S. dollar, making it the best performer among Asian currencies during the period.

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